For 26-year-old Jessica Tsoi, traveling has always been a major part of her life since she was a child taking family vacations during summer vacations.
As an adult with a career and income of her own, she has explored countries such as South Korea and Switzerland, documenting her experiences under the TikTok handle @jessicawantsanap, where she has around 28,000 followers.
The ‘travel’ hashtag on TikTok has nearly 119 billion views with thousands of videos showcasing beautiful montages of destinations abroad. It often promotes the trendy but controversial idea of spending big bucks on
The repeated phrases are: [location] Also. “They claim the once-in-a-lifetime experience far outweighs the cost.
But should you use up your savings to make the most of your youth? Travel and financial security need not be mutually exclusive, according to experts.
Certified financial planner Akeiva Ellis explains that the old adage of working hard while you’re young to enjoy your old age no longer applies to younger generations.
“More and more people are waking up to the fact that life is not guaranteed,” says Ellis.
Many Gen Z and millennials are pausing savings to prioritize meaningful experiences, especially after months of being stuck at home due to the COVID-19 pandemic.
Tsoi said many people may have stepped up their savings during the pandemic restrictions and are now taking advantage of their extra cash to travel around the world. I take at least one trip that requires a flight, but I also enjoy short trips on the weekends.
A June survey by personal capital, a wealth manager, found that 55% of respondents between the ages of 26 and 41 said they spend more time planning vacations than retirement.
According to Ellis, as we age, our health may suffer, or we may have to deal with other responsibilities that interfere with our freedom, such as caregiving.
“It makes sense for a lot of people to make the most of their 20s that way and see as much of the world as they can before reaching an important life milestone.”
Ellis says that while the intangible benefits of experiencing new places replace the “dollars and cents” aspect for some, there are ways to make travel affordable and maintain financial goals. .
She says the more advance planning you can do, the better. She says, “Be proactive and say, ‘Okay, what trip do you want to do this year?’ And start setting aside money to cover the costs.”
Ellis also recommends “travel hacks” that maximize credit card rewards and bonuses for expenses like flights and lodging. She says she took advantage of these perks to travel “for free” to Dubai and the Maldives a few years ago with her husband.
Tsoi said she uses her Chase Sapphire Reserve card for airport lounge access and earns points to invite her parents and grandparents on business class flights. She also suggests bundling hotels and flights for discounts and discounts.
We recommend adding 5-10% to your budget for changes in plans or emergencies.
Part of the planning process, Ellis says, involves actually creating a budget for what you plan to spend on vacation. When it comes to food and things like that, it’s hard to stay on schedule. Especially when you want to immerse yourself in the surrounding culture.
“I was like, ‘Oh, you’re only here once, go to this restaurant.’ I’m that person.”
Ellis also explains that travel doesn’t necessarily have to involve flying around the world. For example, you can take a road trip or a domestic trip that doesn’t cost as much as booking a flight to the Maldives.
The flights alone can save you a lot of money on your travel budget. His ValuePenguin, a personal finance site, points out that destination trips often make up half of vacation spending.
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Tsoi didn’t say that. “I don’t think it’s worth going into debt. And it’s something that will stay with you for quite some time.
Borrowing money for the holidays can affect your credit score.When you apply for a mortgage or more credit, your lender will determine if you are a reliable borrower. It is used for
Americans already have a lot of household debt — $16.51 trillion in the third quarter of this year, according to the Federal Reserve Bank of New York. And with inflation still keeping prices high and Fed rate hikes pushing rates higher, borrowing is even more expensive.
Tsoi believes that traveling only makes sense if you can afford fixed living expenses like rent, utilities and groceries, and if you can pay your monthly credit card bills on time.
She also sets aside money for retirement and savings. Use the rest for travel and other fun activities.
And she stresses the need to prioritize the most valuable things in one’s life.
“Personally, for now, it’s comfort, convenience and practicality. I upgrade my flight like a business class upgrade. If I had a little more legroom, I’d leave my bags or go to a nicer hotel.” Let’s stay.”
She adds that she doesn’t typically spend money on other things, like getting her hair and nails done or decorating her apartment, but that could change later if she has more money or her priorities change. There is a possibility
“Whatever makes you happy.”
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This article is for informational purposes only and should not be construed as advice. It is provided without warranty of any kind.